Written by Biteye core contributor Jesse

As Trump wins the election, investors expect pro-crypto The new currency will be issued more beneficial to the development of the cryptocurrency industry, and Bitcoin will also record its largest monthly increase in history, approaching US$100,000. Bitcoin's position in the traditional financial market is becoming more and more important, and funds continue to flow into Bitcoin ETFs, making Bitcoin the seventh largest asset in the world with a total market value of US$2.6 trillion. If Trump fulfills his promise to use Bitcoin as a reserve after taking office, we will see various countries rushing to raise funds for Bitcoin. By then, the total market value of Bitcoin is expected to exceed Apple, the world's largest market capitalization, challenging gold's reserve status.

On the other hand, due to scalability limitations, Bitcoin has only been used as a store of value for a long time. Bitcoin on the main network cannot be used like Ethereum. Squares also earn interest in the DeFi protocol. Bitcoin TVL is currently only 6.56% of ETH. If it reaches the same TVL as Ethereum, Bitcoin’s TVL will still have room for 15 times, creating an incremental market of 600+ billion US dollars. Not to mention that Bitcoin’s total market capitalization is 4.5 times that of Ethereum. Therefore, L2, which is built around Bitcoin, has experienced explosive growth this year.

The Bitcoin ecosystem is undergoing a profound paradigm shift, showing a multi-dimensional development trend. Expanding from a single-asset economy to a multi-asset economy (introducing diverse assets such as NFTs, stablecoins, and protocol tokens through tokenization); transforming from a value store role to a value creation engine (implementing the application of Bitcoin in DeFi, leveraging NFTs Promote the marketization of digital and physical assets); upgrade from a payment intermediary to a decentralized value network (through Bitcoin’s on-chain data and its expansion technologies, such as Lightning Network and cross-chain protocols, Bitcoin is becoming the core foundation of the Internet of Value facilities to support more efficient and secure value exchange and transmission). This transformation has enabled Bitcoin to no longer be defined as just a carrier of value, but has become an important cornerstone of innovation and economic growth, bringing unprecedented opportunities to the blockchain industry.

However, the inherent limitations of Bitcoin, such as no smart contract function, trustless cross-chain, high transaction fees, network congestion and confirmation delays, have always limited With the development of the Bitcoin ecosystem. The construction of numerous Bitcoin L2s has further fragmented liquidity. In addition, the security of the new Bitcoin L2 also needs to be tested by the market.

In the context of huge market demand and painful pain points, EOSexSat, supported by Network, came into being and embarked on an innovative development path. exSat's goal is to break through the limitations of Bitcoin, become the docking layer for Bitcoin's scalability, connect closed blockchain islands, and create a more interconnected, efficient, and multi-functional blockchain ecosystem. By providing decentralized data indexing and Bitcoin trustless cross-chain, standardized integration of most Bitcoin L2, and support for EVM, Antelope, ZK and other technologies, exSat aims to maximize the possibilities, security and expansion of the BTC ecosystem. Stability, fully unleash the potential of Bitcoin.

This article will introduce the innovative features, architecture, participation methods and token model of exSat to help readers quickly understand this emerging Bitcoin expansion plan.

1. Innovative features

First, let us see what innovative changes exSat has brought to the Bitcoin ecosystem:

Better data synchronization method: It combines the two mechanisms of "proof of work" and "proof of equity" to realize the safe import of Bitcoin data through BTC pledge.

Convenient data management: In order to allow smart contracts to run smoothly, a decentralized data indexing system has been developed. This system can support a variety of assets, such as BTC, Ordinals, Runes, etc.

Secure asset management: A decentralized asset management system has been established between BTC and exSat to ensure that asset transfers are both safe and convenient, allowing exSat to Inherit the trust foundation of Bitcoin and provide developers with more innovation opportunities.

Smart contract function upgrade: Fully supports Ethereum virtual machine application development, developers can develop richer decentralized applications in the Bitcoin ecosystem.

Flexible expansion solution: exSat provides developers with a safe and efficient tool to easily create Bitcoin's second-layer network solutions, such as zero-knowledge Proven rollups or sidechains using the latest Antelope protocol simplify the development process.

The emergence of exSat not only makes Bitcoin easier to expand, but also adds smart contract functions, making Bitcoin no longer just a store of value. Compared with other similar projects, exSat focuses on how to put BitcoinThe trust mechanism extends to a wider range of application scenarios, allowing more decentralized applications and second-tier networks to share this trust foundation. exSat adopts a modular design concept to provide scalability while maintaining safety. It is foreseeable that exSat will help Bitcoin play a greater role in this technological revolution and support more diverse applications to flourish.

2. Protocol architecture

How does exSat achieve the above advantages? Unlike typical L2 solutions designed to increase transaction speed or reduce costs, exSat innovatively introduces a docking layer to fully expand the Bitcoin ecosystem. This section provides an in-depth analysis of the architecture of exSat.

Data Consensus Extension Protocol

exSat adopts a combination of workload proof ( The decentralized hybrid consensus mechanism of PoW) and Proof of Stake (PoS) ensures the accurate synchronization of Bitcoin blocks in exSat.

By incorporating Bitcoin miners into the exSat ecosystem, the platform leverages Bitcoin's mature PoW security architecture to ensure the integrity and reliability of synchronized block data across the entire network. sex. In the exSat network, mining pools serve as synchronizer nodes, responsible for synchronizing raw block data from the Bitcoin blockchain and submitting it to the exSat network. The block data submitted by the synchronizer will be strictly verified through the smart contract. Only when the hash value of the block is consistent with the validator consensus, the data will be considered valid. The first synchronizer to upload the correct block data will be rewarded with XSAT.

PoS verification mechanism introduces an additional verification layer. Verifiers participate in network governance and block verification by pledging encrypted assets, which enhances the network's ability to resist risks and at the same time Ensure alignment of interests with participants. The hybrid consensus mechanism ensures exSat's high security and decentralization, directly supports smart contracts and completes transactions within 1 second. Validators provide trust and security by staking BTC and XSAT, and verify the data submitted by the synchronizer based on the PoS model.

Through the collaboration of synchronizers and verifiers, the exSat network realizes the uploading and verification of Bitcoin block data. This mechanism ensures that the exSat network has a reliable data foundation, providing trust and security for all subsequent operations.

Decentralize state data index (Decentralized State Data Indexing)

exSat provides a decentralized state data indexing function and synchronizes Bitcoin's UTXO data through the following two steps:

Historical UTXO data: For blocks before Bitcoin block height 840,000, exSat constructs historical UTXO data through snapshots and uploads them in an open source and verifiable manner.

Real-time UTXO data: For blocks after height 840,000, exSat performs on-chain synchronization, verification and analysis through synchronizers and verifiers, and finally creates a real-time UTXO chain Index up.

This two-step process establishes a reliable UTXO data index, making smart contract operations on the chain more efficient and trustworthy, and providing greater support for exSat network applications. and expansion laid the foundation.

In the exSat system, Bitcoin block data is parsed through smart contracts and stored in the decentralized database RAM, ensuring that the data is highly available under consensus. letter. Asset data is only accessible by DApps in a read-only manner, and only the block parsing contract can update the data. Through smart contracts or RPC interfaces, applications can call all data from off-chain services without the need for external oracles, resulting in higher security and smoother user experience. Combined with decentralized asset custody, this model creates new opportunities for decentralized applications based on Bitcoin and further promotes the prosperity of the Bitcoin ecosystem.

Currently other second-layer networks currently do not have their own index data. The decentralized data index of the exSat network can provide data for these second-layer networks and become a second-layer hub. In terms of positioning, exSat is similar to Taobao. The other two floors are merchants, which use the exsat (Taobao) platform (data) to provide services (sell things) to other users.

Smart contract platform + EVM compatibility

Fully compatible with the Ethereum Virtual Machine (EVM), it is conducive to the development of diversified smart contracts and expands the exSat platform Practicality and functionality.

With EVM compatibility and account abstraction, exSat enables flexible payments using multiple assets such as BTC, Ordinals, and other Bitcoin ecosystem assetsGas fees. At the same time, the platform also supports paying gas fees for others, simplifying operations for developers and users.

The validator manages a multi-signature escrow account and uses a threshold signature scheme to process deposits and withdrawals on the Bitcoin network. Deposits are made by transferring funds into an escrow account. When exSat imports raw Bitcoin blocks into the system, deposit transactions can be detected and processed accordingly. Withdrawal requests need to be sent to the exSat smart contract. The smart contract will verify the request and generate a Bitcoin transaction based on the request. Validators responsible for operating multisig escrow accounts will sign and forward transactions to the Bitcoin network.

Extending possibilities with Rollup

exSat provides Bitcoin's data availability and settlement layer, supporting all Rollup solutions, including Optimism (OP) and zero-knowledge proof Rollups . Since both data availability and settlement are performed on exSat, there is no need to use data availability samples for data publishing. Zero-knowledge proof verification from Bitcoin L2 Rollups will be performed on exSat.

This modular approach enables developers to customize Bitcoin L2 solutions according to different needs and is expected to promote the prosperity of the Bitcoin DApps ecosystem.

3. Participation methods

exSat received a grant of over US$20 million from the EOS Foundation as start-up capital. Yves La Rose, the founder of exSat, is the founder and CEO of the EOS Foundation.

exSat was launched on the mainnet on October 23, and the cross-chain bridge was launched on November 5. The exSat cross-chain bridge was developed in partnership with Ceffu, ChainUp, Cobo and Cactus and is Blocksec audited.

In addition, exSat's major industry partners include Matrixport, Spiderpool, Antpool, viaBTC, Everstake, HashKey Cloud, OKX, BitTrade, Bitget, etc.

exSat Network has attracted more than $690 million (7318 BTC) in TVL, and individual users can alreadyStake Bitcoin on the exSat network and receive XSAT token rewards.

TVL query link: https://defillama.com/protocol/exsat-credit-staking

exSat is currently launching the Pioneer2.0 activity. Complete the staking task (minimum pledge 0.005BTC). If you accumulate 100 points, you can participate in the prize pool. In addition to XSAT token rewards, exSat will also distribute community incentives worth 100,000 U to users during this event.

Active link: https://x.com/exSatNetwork/status/1854217085569937590

According to official news, staking BTC can earn approximately 3 times the number of XSAT tokens in return. With a minimum stake of 0.005BTC, you can mine 0.015 XSAT every day. The current OTC price of XSAT is about 110U, and the daily return for the minimum guarantee number is 1.65U. At the current Bitcoin price of $90,000, the expected annualized rate is approximately 133%.

In view of the considerable potential profits, 41 institutions have participated in the first mine, and not many retail investors have participated. Staking Bitcoin on the exSat network allows you to earn XSAT immediately with the institution, rather than accumulating points or waiting for future airdrops. While retail investors are investing in popular Bitcoin projects, they may gain more by participating in emerging projects such as exSat.

Staking Guide: https://medium.com/exsat-network/exsat-bitcoin-staking-guide-4bca438eea5e

4. Token Economy Learn

The total supply of XSAT tokens is 21 million, using a halving mechanism similar to Bitcoin. Each halving cycle consists of 210,000 blocks, counting from the synchronization of the first 840,000 Bitcoin blocks (N > 840,000).

Initial supply and halving mechanism

When the network starts, the initial reward for each block is 50XSAT. Rewards will be halved at the end of each halving cycle to control inflation and maintain the economic viability of mining incentives.

Network startup phased planning

1. Initialization phase

The exSat Foundation is responsible for synchronization Historical data for 840,000 Bitcoin blocks as a snapshot. No rewards are issued at this stage, the purpose is to lay the foundation for network operations.

2. Network startup phase

After completing historical data synchronization, the exSat network is officially launched , real-time synchronization of raw data from the Bitcoin blockchain. This process allows the network to continuously receive and process the latest block data, discovering and validating UTXOs and other types of cryptoassets. At the same time, exSat’s mining reward mechanism will also officially take effect. Before the XSAT staking phase is launched, validators only need to meet the minimum staking threshold of 100 BTC and do not need to stake additional XSAT. This phase is expected to last approximately six months, and validator rewards will be proportional to the amount of BTC staked.

3.XSAT staking phase

About 3-4 after the first halving event Within months, the XSAT staking phase will be launched. Only users who meet the minimum staking requirement of 100 BTC and rank high in XSAT staking amount (at least 21,000 XSAT) can become official verifiers, participate in signings and receive rewards.

exSat allows you to obtain token incentives through both PoW and PoS.

Mining pools need to participate in the production of Bitcoin blocks within 72 hours. Mining pools that successfully submit Bitcoin block data can receive data submission rewards (% 10%) and block production rewards (40%).

Verifiers are qualified to participate by pledging at least 100 BTC, and when verifying Bitcoin block data, the first verifier to complete verification can obtain data verification Rewards (10%). In addition, validators can also receive staking rewards (40%) through staking, which can be increased to up to 80% when no miners produce blocks.

Through this design, exSat not only improves the efficiency and security of block data processing, but also provides users with high-yield opportunities to participate in the construction of the Bitcoin ecosystem.

5. Summary

exSat is a project supported by the EOS Foundation. It was launched through a fair launch and has in-depth cooperation with leading custodians and mining pools. exSat is a docking layer dedicated to expanding the Bitcoin ecosystem. It enhances interoperability, scalability and security within the Bitcoin ecosystem by extending Bitcoin's data consensus. By facilitating direct inquiries into Bitcoin and ecosystem token balances, exSat enables the seamless flow of assets and information between different networks and Bitcoin L2, and will be an important part of the Bitcoin ecosystem.